Curve data tracked 704 soft-liquidation cases on the lending platform, with a median duration of 14.5 days. The figures suggest that some DeFi loans can remain alive for weeks after moving into the so-called danger zone, rather than being wiped out right away. According to CoinDesk, the pattern highlights how Curve’s soft liquidation model works during market drawdowns. Instead of forcing an immediate end to every stressed position, the mechanism can leave certain borrowers in liquidation status for an extended period. The data point does not claim that all loans avoid liquidation, but it shows that some positions can stay active well beyond the point where they would typically be considered at risk.
Curve data recorded 704 soft-liquidation instances on the lending platform, with a median duration of 14.5 days. The figures show that some DeFi loans can survive for weeks after entering the so-called danger zone, rather than ending immediately.
According to CoinDesk, the data illustrates how Curve’s soft liquidation model allows some borrowers to stay afloat through market drawdowns.
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